Mastercard hails strong start to the year as revenues jump
Mastercard has reported a forecast-beating jump in first-quarter revenues and income.
Net revenue rose 9%, or 13% on a currency neutral basis, to £3.9bn, putting the company slightly above analysts' estimates, while operating income was ahead 21% to $2.2bn. Net income meanwhile at the US firm was up 25% $1.9bn, or 31% on a currency neutral basis, while diluted earnings per share were ahead 28% at $1.80.
Mastercard is benefiting from high employment levels in the US, which has underpinned strong growth in retail sales. The company said switched transactions were ahead 17% in the first quarter, while gross dollar volume - the value of the transactions Mastercard processes - jumped 12% to $1.5trn on a local currency basis.
As of 31 March, customers held 2.5bn Mastercard and Maestro-branded cards.
Ajay Banga, Mastercard president and chief executive, said the company had enjoyed “a very good start" with "strong" revenue and earnings growth.
He added: “We continue to make significant progress, developing innovative new products with partners like Apple and Goldman Sachs, expanding the geographic footprint of our real-time payment solutions and announcing several acquisitions to advance our cross-border payments, safety and security, and merchant engagement strategies.”
On Monday, Mastercard and rival Visa agreed to cut the fees they charge on purchases made in the European Union with foreign issue cards. The concession was part of a long-running antitrust dispute with Brussels.
Shares in Mastercard rose 1% in pre-market trading.